Sotheby's to enter the georgian market. „სოთბი“ საქართველოს ბაზარზე შემოვა

Sotheby's to enter the georgian market. „სოთბი“ საქართველოს ბაზარზე შემოვა
03 December 2012

After six months of negotiations Sotheby's, luxury homes and real estate company, has finally decided to accept the initiative of the Israel-Georgia Chamber of Business and enter the Georgian market. Experts of Sotheby's are going to research the market in Tbilisi over the next two months. The company will make special projects for the 5 star Rixos residential penthouse. Itsik Moshe, the President of Israel-Georgia Chamber of Business believes that RixosIS penthouse will be assessed at USD 10 million and will be the most expensive apartment building, not only in Georgia but in Georgia's neighbouring countries too.

"Sotheby's will help foreigner investors to find property for sale or for rent in Georgia," Itsik Moshe told The FINANCIAL in an exclusive interview. "Those who contact Sotheby's International Realty will be automatically connected to a team of local experts, known in their communities for their integrity and the exceptional level of service they provide. Working with Sotheby's agents, buyers gain access to comprehensive and up-to-the-minute knowledge of the local property market, allowing them to fully understand the options and opportunities currently offered. If they are interested in purchasing beyond their local area, buyers also benefit. Membership in the Sotheby's International Realty network enables Sotheby's agents to provide insider access to a select group of real estate professionals in the world's most sought-after locations," he added.

Besides the entrance of Sotheby's, 50 business projects of Israeli companies will be implemented in Georgia in 2013, consisting of USD 200 million of investments. The top fields for Israeli business projects are real estate, tourism, agriculture, communications, and aviation. As there will be a deficit of 10,000 rooms in Georgia Israeli investors see big potential in building hotels in the country. Borjomi, Kvariati, Svaneti and Kakheti are the regions where Israeli investors are going to build hotels. Other big projects will be implemented in the agriculture sector.

The tourism sector is one of the most attractive sectors for Israeli investors in Georgia as a large number of Israeli tourists come here. "60,000 Israeli tourists visited Georgia in 2012. The Chamber expects the arrival of 100,000 tourists for 2013 and intends to increase their number to at least 200,000. Eight percent of the tourists from Israel are from the medical sphere. As the statistics show, each tourist spends about USD 1,000 in Georgia," Moshe said.

"USD 300 million of Israeli investments was implemented in Georgia from 2004 to 2008. In terms of private investments Israel is a leader in Georgia. These investments do not include tenders and the big amount of money which flows from World Bank and other institutions. We have been operating in Georgia for fifteen years and for us the Israeli-Georgian relationship is not only about numbers, but about building a bridge between the two countries," he added.

The President of the Israel-Georgia Chamber of Business welcomes the Georgian Government's initiative which means co-participation of Georgian funds in foreign investment projects. He believes that this initiative will encourage Israeli companies to continue their business activities in Georgia, will stimulate potential investors and will attract new investments. Itsik Moshe says that this is kind a fund that exists in Jerusalem. The fund has already started cooperation with Ministry of Economy of Georgia for studying experienced method.

The Israeli Government supports the business forums in Georgia. This year's forum aims to represent the result of Georgian-Israeli economic relationships to the new government and discuss plans for the future with them.

"This year the Forum's format is a little bit different. Business needs a developed market. The world crisis is coming to an end. If the Government really increases the investments and stimulates the business sector then we believe that next year will be the peak of Israeli investments in Georgia. When 80 businessmen come from Israel to Georgia and both the governments support it, this means that we are talking about a different level of relationship. Out of 100 businessmen 70 percent are not born in Georgia and this fact proves how the Georgian market is attractive for Israeli investors," said Moshe.

Within the framework of the Business Forum, eighteen local meetings will be held in Tbilisi .

"Our advice for foreigner investors is to not do the same as local developers do; always bring new technologies, a new system of management and new brand; listen to the local people's opinions and adapt international standards according to their ideas. If they apply a method which is proven in other countries they will fail. For example investors should not calculate a business plan for 1.5 million people which is the total number of Tbilisi 's residents when there are only 100,000 wealthy people out of this number," said Moshe.